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Assessing the welfare effects of promoting biomass growth and the use of bioenergy – A simple back-of-an-envelope calculation

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Abstract

Using a growth model that accounts for environmental and climate externalities, we take a closer look at the welfare e¤ects of promoting biomass growth and the use of bioenergy. As an illustration, a forest hypothetical intensive forest cultivation project is simulated. Costs and benefi…ts of the project show that we need not only determine the postive effects of promoting biomass growth and the use of bioenergy, such as substitution away from fossil fuels and carbon sequestration. But more importantly, to achieve a balanced measure of the e¤ects on the climate, we must also incorporate all carbon emissions that is associated with bioenergy. Not doing so will overestimate the positive climate e¤ects of increasing the use of bioenergy.

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  • Lundgren, Tommy & Marklund, Per-Olov, 2011. "Assessing the welfare effects of promoting biomass growth and the use of bioenergy – A simple back-of-an-envelope calculation," CERE Working Papers 2011:11, CERE - the Center for Environmental and Resource Economics.
    • Handle: RePEc:hhs:slucer:2011_011
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    File URL: http://www-sekon.slu.se/~gbost/CERE_WP2011-11.pdf
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    References listed on IDEAS

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    1. Lundgren, Tommy & Marklund, Per-Olov & Brannlund, Runar & Kristrom, Bengt, 2008. "The Economics of Biofuels," International Review of Environmental and Resource Economics, now publishers, vol. 2(3), pages 237-280, November.
    2. Brännlund, Runar & Kriström, Bengt & Lundgren, Tommy & Marklund, Per-Olov, 2008. "The Economics of Biofuels," Umeå Economic Studies 736, Umeå University, Department of Economics.
    3. Caputo, Michael R., 1990. "How to do comparative dynamics on the back of an envelope in optimal control theory," Journal of Economic Dynamics and Control, Elsevier, vol. 14(3-4), pages 655-683, October.
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    Keywords

    Bioenergy;

    JEL classification:

    • Q23 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Forestry
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources

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